Key points
- Group sales down 0.0% to $185.2m, underlying EBITDA up 0.8% to $9.9m
- Statutory net loss of $0.7m, impacted by $5.2m ERP project costs
- Successful completion of ERP upgrade, delivering productivity and customer service improvements
Full summary
Coventry Group Ltd reported a 0.0% decrease in group sales to $185.2m and a 0.8% increase in underlying EBITDA to $9.9m for the first half of FY25. The company's statutory net loss of $0.7m was impacted by $5.2m in ERP project costs, but the successful completion of the ERP upgrade is expected to deliver productivity and customer service improvements. Fluid Systems (FS) sales were down 5.4% to $73.3m, with FS EBITDA down 23.0% to $7.2m, while Trade Distribution (TD) sales were up 3.9% to $111.9m, with TD EBITDA up 19.0% to $10.1m. The company's net debt position at 31 December 2024 was $52.9m, higher than planned due to some larger customer payments not received at the end of the half as expected. At 31 December 2024, the Group has Net Assets of $140.8m, Current Assets exceeding Current Liabilities by $31.5m and Net Tangible Assets of $32.0m. The Board has determined that no interim dividend be declared.
Outlook
Demand remains positive in the mining and resources sector in Western Australia and Queensland, though there is some short-term softening in other Australian states. Economic conditions remain challenging in the short term in New Zealand. The Group's priority is profitable sales growth, which it plans to achieve through new branch openings, branch refurbishments, business development, product range expansion and additional targeted marketing.